Chapter I

Introduction

Vigan City has been known for more than three centuries as the center of

political, religious, commercial, social and cultural activities in the UNESCO heritage

site. Furthermore, it became famous because of its unique culture that people all over the

world come to recapture the remnants of its past. It is a World Heritage Site as one of the

numerous Hispanic towns in the Philippines, and is well known for its cobblestone

streets, and a unique architecture that fuses Philippine building design, and construction

with colonial European architecture.

Culturally speaking, Ilocanos are food lovers. This is showed by their love for

fiestas where various homemade delicacies are served to visitors. Food for Ilocanos,

especially Biguenos, does not only serve as a symbol of hospitality, but also as a means

of maintaining ties.

There are a lot of native delicacies that are produced in the City of Vigan that

serve as a source of income for Biguenos. One of the cuisines of Biguenos is the Bagnet.

Vigan Bagnet is an Ilocano pork dish that is popular because of its double-fried

crispiness. It is cooked in lard (note: its own mantika) in a big kawali over an old-school,

wood-fired cement oven. Kasim is the part of the pork that is used for the Bagnet. It is

deep-fried with salt for 2-3 hours until it softens and becomes red. The best way to know

if it is cooked is by touching it. The oil is removed afterwards. Then, the fried pork is

allowed to settle for 15 minutes before putting it back and frying it again for maximum

crispiness.

1
 Unlike lechon kawali, however, which is deep fried at a very high temperature

only until the skin is blistered and the meat is lightly browned, bagnet is fried longer

achieving the same blistered skin but with a well-browned, drier and crispier exterior

portion of the meat. When freshly cooked, the well-browned portion of the meat is quite

delightful to eat. But, after a few hours, it turns tough and leathery. The most common

way to refresh bagnet is to chop and fry the pork in a little oil and sprinkling it with salt

and pepper.

Hopefully the results of this study can benefit the following:

First, the bagnet industry. Results of this study can serve as a basis for improving

the quality and developing new methods and strategies in the production and marketing

of the bagnet products.

Second, the study can also be beneficial in enhancing the socio-economic

development in the city.

Third, if made to remain positive with the help and assistance of the government,

the rural folks and all the people in the community will be motivated to promote their

livelihood and will result in the improvement of their standards of living and in the end,

they will achieve a quality life.

2
Statement of the Problem

This study aimed to determine the business practices of bagnet industry in Vigan

City.

Specially, this study sought to answer the following questions:

1. What is the profile of the bagnet industry in Vigan City in terms of the following:

1.1 Personal Profile

1.1.1 Age,

1.1.2 Sex,

1.1.3 Civil Status, and

1.1.4 Educational Attainment?

1.2 Business Profile

1.2.1 Capital,

1.2.2 Sources or Source of Financing,

1.2.3 Number of Workers,

1.2.4 Length of Operation, and

1.2.5 Average Monthly Sales?

2. What is the level of the business practices of the bagnet industry in terms of:

2.1 Production Practices

2.1.1 Raw Material Selection,

2.1.2 Purchasing of Raw Materials and Ingredients, and

2.1.3 Production Processes?

3
 2.2 Financial Practices

2.2.1 Capitalization, and

2.2.2 Budgeting?

2.3 Marketing Practices

2.3.1 Price,

2.3.2 Product, and

2.3.3 Marketing Channel?

3. Is there a significant relationship between the personal and business related factors and

business practices of the bagnet industry?

Assumptions

This study will consider the following:

1. The business practices of the bagnet industry can be measured.

2. The data gathering instrument is valid and reliable.

3. The respondents will be honest and objective in answering the Questionnaire.

Research Hypothesis

This study will consider that there is no significant relationship between the

personal and business factors and the business practices of the bagnet industry in Vigan

City.

4
Scope and Delimitation

This study will aim to determine and analyze the prevailing production,

marketing, and financial practices of the producers, vendors, and workers of the bagnet

industry in Vigan City.

The production practices of the bagnet industry will be limited along the

following: raw materials selection, purchasing of raw materials and ingredients and

production processes. On marketing practices, study will be limited to product, price and

marketing channel and lastly, the financial practices will be limited to capitalization and

budgeting.

The respondents to be involve in this study will be the producers who are duly

registered/not registered, workers of the respondents, and Bagnet vendors.

Likewise, this study will determine whether the personal profile of the

respondents and the business profile of the Bagnet industry have an influence on the

prevailing business practices along production, marketing and financial of the Bagnet

industry in Vigan City.

5
Theoretical Framework

Business operations are those ongoing activities involved in the running of a

business for the purpose of producing value for the stakeholders. They are contrasted

with project management, and consist of business processes.

The outcome of business operations is the harvesting of value from assets owned

by a business. Assets can be either physical or intangible. An example of value derived

from a physical asset like a building is rent. An example of value derived from an

intangible asset like an idea is a royalty. The effort involved in harvesting this value is

what constitutes business operations.

Entrepreneurship is the act of being an entrepreneur, which is a French word

meaning one who undertakes an endeavor. Entrepreneurs assemble resources including

innovations, finance and business acumen in an effort to transform innovations into

economic goods. This may result in new organizations or may be part of revitalizing

mature organizations in response to a perceived opportunity. The most obvious form of

entrepreneurship is that of starting new businesses; however, in recent years, the term has

been extended to include social and political forms of entrepreneurial activity. When

entrepreneurship is describing activities within a firm or large organization it is referred

to as intra-preneurship and may include corporate venturing, when large entities spin-off

organizations.

6
Conceptual Framework

The conceptual framework of the study is reflected in the schematic diagram in

Figure 1, showing the relationship of the variables involved in the study of the business

practices of the Bagnet producers in Vigan City.

Profile of the Bagnet Industry Business Practices

A. Personal Profile A. Production

- Age - Raw Materials
- Sex Selection
- Civil Status - Purchasing of Raw
- Educational Materials and
Attainment Ingredients
- Production
B. Business Profile
processes
- Capital B. Financial
- Sources of Capital - Capitalization
- Number of Workers - Budgeting
- Length of Operation C. Marketing
- Average Monthly - Price
Sales - Product
- Marketing Channel

Figure 1. Conceptual Paradigm

The paradigm in figure 1. explains the conceptual framework of the study. The

profile of the respondents which consists of the personal and business profiles are

assessed and evaluated through respective indicators to determine the relationships and

the level of the business practices of the Bagnet industry along production, marketing,

and financial.

7
Operational Definition of Terms

For a better understanding of the study, the following terms were operationally

defined:

Age. It indicates how old the respondents at the time of the study.

Average of monthly sales. This refers to a quantity or number of goods sold in a

specified period of time. It consists of gross receipts from all types of sales during a 12-

month period.

Budgeting. This refers to the statement of financial position of the business for a

definite period of time based on estimates of the expenditures and proposals of financing

them.

Business practices. This refers to the actions being taken in the business. In this

study, it is categorized in terms of production aspect, marketing, and financial aspects.

Capital. This refers to the amount of money invested for the business.

Capitalization. This refers to the factors considered on financing the operations

of the business. If refers to the assets readily available for the business operations.

Civil Status. This refers to whether the respondent is single or married.

Educational Attainment. This indicates the highest degree of educational

attainment of the respondent.

Financial Practices. This refers to the capitalization and budgeting in the conduct

of the bagnet business.

8
 Length of Operation. This refers to the number of years the entrepreneur has

ventured into business.

Marketing Channel. This refers to where the products are sold and distributed.

Marketing Practices. This refers to the ongoing process of planning and

executing the marketing mix (product, price, place, promotion offer referred to as 4Ps.).

Price. This refers to the amount of money given or set as consideration for the

sale of specified products.

Pricing. This refers to the manual or automatic process of applying prices to

purchase and sales orders, based on factors such as a fix amount, quantity, promotion or

sales, campaign, specific vendors quote, price prevailing on entry. It is the process of

assigning an amount or value based on production inputs and mark ups.

Product. This refers to the actual goods or services offered for sale.

Production Practices. This refers to the manufacture in processing of goods and

merchandise, including their design, treatment and various stages.

Profile of Respondents. This refers to the personal and professional

characteristics of the respondents. In this study, it is categorized into sex, age, civil status,

number of years in the business and volume of sales.

Sex. This refers to whether the respondent is a male or female.

Sources of capital. This refers to the ways and means of raising capital to start

and run the business.

9
Research Design

The study will be made of the descriptive method of research. There are three

techniques under the descriptive method of research: survey, case study and content

analysis. They defined survey as a fact-finding study with adequate and accurate

interpretation. It is used to collect demographic data about peoples behavior, practices,

intentions, beliefs, attitudes, opinions, judgments, interests, perceptions and the like and

such data are analyzed, organized and interpreted. The descriptive survey method will be

employed to describe the respondents of the study and to determine the level of business

practices of the Bagnet Industry in Vigan City.

Population and Sample.

The respondents of this study will consist of three groups as follows: duly

registered/not registered, workers of the producers and Bagnet vendors.

Table 1

Distribution of the Respondents

Respondents N

Producers 10

Workers 8

Vendors 7

Total 25

10
Data Gathering Instruments

The researchers will be made use of a questionnaire in gathering data.

Observation and interview of the business will be conducted to verify and substantiate the

outcome of the study.

Data Gathering Procedure

The researchers will be administered the questionnaires by going to the business

sites of the producers.

Statistical Treatment of Data

The personal profile of the respondents will be measured in terms of age, sex,

civil status, number of years in the business and volume of sales. The level of business

practices of the Bagnet industry will be determined in terms of the three aspects of

management namely: production, financial, and marketing.

The problem raised in this study will be treated using the following statistical

tools:

1. Frequency count and percentages will be used to describe the respondents of the

study in terms of personal and business related factors;

2. Weighted mean will be used to determine the level of business practices of the

Bagnet industry along the following functional areas of management such as

production, financial and marketing.

11
Review of Related Literature and Studies

Vigan Bagnet Production

Vigan Bagnet is the Ilocano version of lechon kawali. Large chunks of pork

leimpo, belly or pork sides, deep fried for at least two times until crispy. It is serve with

kamatis and lasuna with bagoong nga munamon. Just the thought of it makes every

genuine Ilocano drool. Just be careful when cooking or deep frying this dish, expect a lot

of hot oil splashing.

Cooking procedure:

Wash the pork belly. Cut into large chunks and place in a large pot. Add enough

water to cover the pork belly. Add in the salt, the peppercorns, the garlic and the bay

leaves. Cover and bring to a boil and simmer for 30 to 45 minutes or until tender.

Remove all scum that rises. Remove from the pot, place in a colander and let sit for a

while so that the excess liquid will drain. Dry with kitchen paper towels if necessary.

Keep refrigerated for several hours. In a large kawali heat enough cooking oil and deep

fry the pork at low heat for 30 to 45 minutes in batches. When done remove the fried

pork from the kawali and drain oil in a colander or kitchen paper towels. Allow to cool

completely and chill in a refrigerator. Reheat the same oil on the kawali over moderate

heat. Now deep fry the pork once more for 10 to 15 minutes or until golden brown. Deep

fry until crisp and blisters appear on the skin. Drain on kitchen paper towels. Chop

the bagnet to serving pieces and serve immediately with a selection of garlic and sukang

Iloko or chopped tomatoes and onions with bagoong isda dip.

12
 Production activities of the industry are usually done at home. The productions

are most convenient at home. Traditional longganisa owners prefer their production are at

home maybe because business can be more secured and more accessible for them in the

supervision of the production activities.

Innovations of the different facilities and equipment became modernized and

offered a great advantage in improving the quality of products of the Bagnet industry.

On Production Management

Production is any process or processing used to create goods or services which

have utility or value. A given process can be simultaneously physical, human, and

economic, and it is designed to transform a given set of input elements into a specified

output elements.

A production system is any cohesive collection of elements that are dynamically

related for the purpose of production. (Bittel, Ramsey Vol.2)

On Production and Marketing Activities

Stevenson (1990) mentioned in his book in Production and Operations

Management that one of the primary responsibilities of operations management is to

achieve productive use of resources. Productivity measure the relationship between

outputs (goods and services) and inputs (labor, capital, materials or other resources) used

to produce them on.

13
Canela and Adhouri (1991) made mention of some barriers and obstacles of

entrepreneurship on which was technology which according to them, was in essential

component of production system. The adoption of new product lines and converted plant

equipment often involved new technology. This could improve product range, cost

competitiveness and productivity. In addition to above, was the problem on demand

conditions. Changes in demand conditions could place firms under considerable strain,

especially the ordinary shifts in regional impact on household budgets and large business

demand for products and services.

The most common and most documented problem of small business was financial

resources. Usually a firm starts with undercapitalization at very early age, continues with

the management of working capital and culminate in delayed search for essential capital

input. (Reynante, 2009)

Operation Management

Operation Management is responsible for producing goods or services. The

creation of goods and services involves transforming or converting inputs into outputs.

Various inputs such as capital, labor and information are used to create goods and

services using one or more transformation processes. To ensure that desired outputs are

obtained; measurements are taken at various points in the transformation process, and

then compared with previously established standards to determine whether corrective

action is needed. (Stevenson, William J., 2002)

14
 According to Thachappily (1979), the goal of business management is to create

wealth for business owners by providing some value that consumers need. The process of

business management involves researching the market for profitable business

opportunities, developing strategies for marketing management, operations management,

financial and human resources management, and implementing the strategies through

planning, organizing, motivating and control. Long term survival requires that businesses

be managed in a responsible and ethical manner by addressing environmental issues and

employee career goals. There is also the issue of complying with the law of the land.

On Financial Management

Capitalization. The need for capital during the early months of the new venture

can become one of the most critical factors in keeping a new venture alive. The

opportunities and ability of the new venture to raise capital will vary, depending on the

form of business.

For a proprietorship, any new capital can come only from loans by any number of

sources or by additional personal contributions by the entrepreneur. In borrowing money

from a bank, the entrepreneur in this form of business may need collateral to support the

loan. Often, an entrepreneur will take a second mortgage on his/her home as a source of

capital. Any borrowing form an outside investor may require giving up some of the

equity in the proprietorship. Whatever the source, the responsibility for payment is in the

hands of the entrepreneur, and failure to make payments can result in foreclosure and

liquidation of the business. However, even with these risks the proprietorship is not likely

to need large sums of money, as might be the case for a partnership or corporation.

15
 In the partnership, loans may be obtained from banks but will likely require a

change in the partnership agreement. Additional funds contributed by each of the partners

will also require a new partnership agreement. As in the proprietorship, the entrepreneurs

are liable for payment of a new bank loans.

In the corporation, new capital can be raised in a number of ways. The

alternatives are greater than in any of the other legal forms of business. Stock may be

sold as either as voting or nonvoting. Nonvoting stock will of course protect the power of

the existing major stockholders. Bonds may also be sold by the corporation. This

alternative would be more difficult for the new ventures since a high bond rating will

likely occur only after the business has been successful over time. Money may also be

borrowed in the name of the corporation. As stated earlier, this protects the personal

liability of the entrepreneurs. (Hisrich, Peters and Sheperd, 2005)

On Marketing Management

Marketing Management is the art and science of choosing target markets and

getting, keeping, growing customers through creating, delivering, and communicating

superior customer value.

In general, a marketing strategy is a plan of action required to realize the main

objective of marketing, which is to influence the target market to buy the product or

service being offered by a business.

Much of the liability to influence the target market is developed by knowing what

these marketing strategies are, by learning from the other companies, and by actual

practice.

16
 Chapter II

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter presents the findings, analysis and interpretation of the data gathered

on the profile of the respondents and their business practices of the Bagnet industry in

Vigan City and their relationship to the functional areas of business along production

marketing and financial.

1.1 On profile of the Bagnet Producers in Vigan City

The Personal Profile of the Respondents of the study is presented on table 2.

Table 2

Profile of the Respondents in Terms of Personal Profile

Variables F %
Age
21-35
36-50
51-65
Above 65
Total
Sex
Male
Female
Total
Civil Status
Single
Married
Widower
Total

17
Table 2 continued.

Educational Attainment
Elementary graduate
High school Level
High school Graduate
College Level
College Graduate
Post Graduate
Total

1.2 On Business Profile of the Bagnet Producers

The business profile of the respondents of the study is presented on Table

3 in terms of capital: start-up and current, sources of capitalization, number of

workers, and average monthly sales.

Table 3

Profile of the Bagnet Producers in Vigan City in Terms of Business related

factors
Business profile F %
Capital
Start-up
P 20,001.00 and above
P 15,001.00 to P20,000.00
P 10,001.00 to P 15,000.00
P 5,001.00 to P 10,000.00
Below P 5,000.00
Total
Current Capital
P 50,001.00 and above
P 40,001.00 to P50,000.00
P 30,001.00 to P 40,000.00
P 20,001.00 to P 30,000.00
Below P 20,000.00
Total

18
Table 3 continued

Sources of Capitalization
Personal earnings/savings
Loans
Government entities/grants
Total
Numbers of Workers
Three (3) or more
Two (2)
One (1)
None
Total
Length of operation
More than 26 years
21-25 years
16-20 years
11-15 years
6- 10 years
Less than 5 years
Total
Average Monthly Sales
P 15,00.00 to P20,000.00
P 10,000.00 to P 15,000.00
Below P 10,000.00
Total

19
2. Level of Business Practices of the Bagnet Industry in Vigan city

2.1 Production Practices

The level of business practices of the Bagnet industry in Vigan City along production

practices in terms of raw materials selection is presented in table 4.

Table 4
Level of Production Practices of the Bagnet Industry in Vigan city in terms of Raw
Materials selection
ITEMS X DR
1. Pork skin and other ingredients meet quality
specification and standards such as:
a. Comes from reliable suppliers.
b. Low of microbial load and free from
chemical contaminants.
c. Passed the meat inspection standards.
d. Free from foot-mouth diseases.
e. Incoming pork skin, are properly sampled
and analyzed to ensure their quality and
purity.
Average weighted mean
Legend: 4.21-5.00 always (A)
3.21-4.20 Oftentimes (O)
2.61-3.40 Sometimes (S)
1.81-2.60 Rarely (R)
1.00-1.80 Never (N)
Table 5
Level of Production Practices of the Bagnet industry in Terms of Purchase of Raw
Materials and Ingredients
ITEMS X DR
a. Pork skin are visually inspected upon
delivery/purchase and use.
b. Manufacturing dates, packaging
dates, and expiry dates are required
for each material delived/purchased.
c. Inspection or grading certificate to
applicable bagnet ingredients are
required before receiving/purchasing.
Average weighted mean

20
 Table 6
Level of Production Practices of the Bagnet industry in Terms of Production
Process
ITEMS X DR
1. Uses traditional method in producing bagnet
products.
2. Adopted the techniques used in producing
bagnet products.
3. Inherited the techniques used in producing
bagnet products.
4. Areas used for domestic purposes or other
types of food preparation are separated by
suitable partitions.
5. Proper processing procedures are strictly
employed.
6. Rigid sanitation procedures are strictly
followed.
7. Personnel hygiene is strictly observed.
8. Appropriate and hygienic working apparels are
required of personnel.
9. Cleaning materials are properly identified to
prevent contamination when used.
10. Floor art in good repair and properly slopped to
eliminate water accumulation.
Avearage weighted mean
Legend: 4.21-5.00 always (A)
3.21-4.20 Oftentimes (O)
2.61-3.40 Sometimes (S)
1.81-2.60 Rarely (R)
1.00-1.80 Never (N)

Table 7

Level of Marketing Practices of the Bagnet industry in Terms of Product

ITEMS X DR
1. Bagnet products are classified according to:
a. Size
b. Price
2. Bagnet products are available at all times.
3. Bagnet products are quality.

21
 4. Bagnet products are produced personally.
5. Bagnet products are taken directly from
producers.
6. Bagnet products are taken directly from
manufacturers.
7. Bagnet products are personally picked up from
producers.
8. Bagnet products are delivered by the
producers.
Average weighted mean

Legend: 4.21-5.00 always (A)

3.21-4.20 Oftentimes (O)
2.61-3.40 Sometimes (S)
1.81-2.60 Rarely (R)
1.00-1.80 Never (N)

Table 8

Level of Marketing Practices of the Bagnet industry in Terms of Price

ITEMS X DR
1. The price of the product is determined based.
a. Cost or amount of expenses.
b. Suggested by supplier-manufacturers
and/or wholesalers.
c. Demand (volume of buyers)
d. Competitors
e. Prevailing market price.
f. Least pricing
2. Different prices for different size of bagnet are
used.
3. Provide credit sales
4. Price dependent relative on type of customers
are used.
5. Giving discount regular buyer/suki.
6. Basis on changing price.
a. Profit earned
b. Available order
c. Cost or amount of expense

22
 d. The market demand and supply
e. Competitors price
Average weighted mean
Legend: 4.21-5.00 always (A)
3.21-4.20 Oftentimes (O)
2.61-3.40 Sometimes (S)
1.81-2.60 Rarely (R)
1.00-1.80 Never (N)

Table 8
Level of Marketing Practices of the Bagnet industry in Terms of Marketing Channel

ITEMS X DR
1. Sells directly to consumer
2. Sell using retailer
3. Use own store in selling bagnet
4. Sell mostly to wholesaler
5. Sells bagnet in terms of:
a. On cash basis
b. Cash on delivery
c. On credit
Average weighted mean
Legend: 4.21-5.00 always (A)
3.21-4.20 Oftentimes (O)
2.61-3.40 Sometimes (S)
1.81-2.60 Rarely (R)
1.00-1.80 Never (N)

23
 Table 10

Level of Financial Practices of the Bagnet industry in Terms of Capitalization

ITEMS X DR
1. The management considers the following
factors to properly finance its operations.
a. Borrows funds from family and friends.
b. Borrows funds from banks and other
financial institution.
c. Avail of purchase discounts.
d. Credit from suppliers.
e. Government programs.
Average weighted mean
Legend: 4.21-5.00 always (A)
3.21-4.20 Oftentimes (O)
2.61-3.40 Sometimes (S)
1.81-2.60 Rarely (R)
1.00-1.80 Never (N)

Table 11

Level of Financial Practices of the Bagnet industry in Terms of Budgeting

ITEMS X DR
1. The management considers the following to
monitor the financial operations of the
business.
a. Expected sales
b. Expected cost and expenses
2. Insures workers and properties
3. Buys equipment and furniture for use in the
business
Average weighted mean
Legend: 4.21-5.00 always (A)
3.21-4.20 Oftentimes (O)
2.61-3.40 Sometimes (S)
1.81-2.60 Rarely (R)
1.00-1.80 Never (N)

24
 APPENDIX

QUESTIONNAIRE FOR VIGAN BAGNET PRODUCERS

Part I. PERSONAL PROFILE OF THE BAGNET PRODUCERS

Direction: Please put a check () mark on the space provided for your answer to the

following items.

1. Name of Owner________________________________
(Optional)

2. Age
[ ] 21-35
[ ] 36-50
[ ] 51-65
[ ] above 65

3. Sex
[ ] Male
[ ] Female

4. Civil Status
[ ] Single
[ ] Married
[ ] Widow/Widower

5. Educational Attainment
[ ] Elementary Graduate
[ ] High School Level
[ ] High School Graduate
[ ] College Level
[ ] College Graduate
[ ] Post Graduate

25
Part II. BUSINESS PROFILE OF THE BAGNET PRODUCERS

Direction: Please put a check () mark on the space provided for your answer to the

following items.

1. How much is your capital? (please check one)

Start up
[ ] P20,000 and above [ ] P50,000 and above
[ ] P15,000 to 20,000 [ ] P40,000 to 50,000
[ ] P10,000 to 15,000 [ ] P30,000 to 40,000
[ ] P5,000 to 10,000 [ ] P20,000 to 30,000
[ ] Below P5,000 [ ] Below P20,00
Current

2. What are the sources of your capital? (please check all that apply)
[ ] Personal earnings/savings
[ ] Loans from cooperatives/rural banks
[ ] Loans from friends/relatives
[ ] Loans from usurious lenders(5/6 or Bombay)
[ ] Government entities/subsidies/grants
[ ] Other, please specify:____________________

3. How many workers do you have?

[ ] Three (3) or more
[ ] Two (2)
[ ] One (1)
[ ] None

4. How many years has your bagnet business been in operation?]

[ ] More than 26 years
[ ] 21-25 years
[ ] 16-20 years
[ ] 11-15 years
[ ] 6-10 years
[ ] less than 5 years

5. How much is your average monthly sales? (please check one)

[ ] P15,000 to 20,000
[ ] P10,000 to 15,000
[ ] Below P10,000

26
 27

6. What are the sources of your capital? (please check all that apply)
[ ] Personal earnings/savings
[ ] Loans from cooperatives/rural banks
[ ] Loans from friends/relatives
[ ] Loans from usurious lenders(5/6 or Bombay)
[ ] Government entities/subsidies/grants
[ ] Other, please specify:____________________

7. How many workers do you have?

[ ] Three (3) or more
[ ] Two (2)
[ ] One (1)
[ ] None

8. How many years has your bagnet business been in operation?]

[ ] More than 26 years
[ ] 21-25 years
[ ] 16-20 years
[ ] 11-15 years
[ ] 6-10 years
[ ] less than 5 years

9. How much is your average monthly sales? (please check one)

[ ] P15,000 to 20,000
[ ] P10,000 to 15,000
[ ] Below P10,000

27
 28

Part III. PRODUCTION BUSINESS PRACTICES OF BAGNET INDUSTRY

Direction: This portion was designed to determine the level of production practices of
Bagnet Industry in Vigan City along raw materials selection, purchasing of raw materials
and ingredients, and production practices. Please rate your practices in each item by
checking the number that corresponds to your choice using the scale below:
5-Always (A)
4-Oftentimes (O)
3- Sometimes (S)
2-Rarely (R)
1-Never (N)
A. Raw Materials Selection 1 2 3 4 5
1. Pork skin and other ingredients meet
quality specification and standards such
as:
f. Comes from reliable suppliers.
g. Low of microbial load and free from
chemical contaminants.
h. Passed the meat inspection standards.
i. Free from foot-mouth diseases.
j. Incoming pork skin, are properly
sampled and analyzed to ensure their
quality and purity.
B. Purchase of Raw Materials and
Ingredients
a. Pork skin are visually inspected upon
delivery/purchase and use.
b. Manufacturing dates, packaging dates, and
expiry dates are required for each material
delived/purchased.
c. Inspection or grading certificate to
applicable bagnet ingredients are required
before receiving/purchasing.
C. Production Processes
1. Uses traditional method in producing
bagnet products.
2. Adopted the techniques used in producing
bagnet products.
3. Inherited the techniques used in producing
bagnet products.
4. Areas used for domestic purposes or other
types of food preparation are separated by
suitable partitions.

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5. Proper processing procedures are strictly

employed.
6. Rigid sanitation procedures are strictly
followed.
7. Personnel hygiene is strictly observed.
8. Appropriate and hygienic working
apparels are required of personnel.
9. Cleaning materials are properly identified
to prevent contamination when used.
10. Floor art in good repair and properly
slopped to eliminate water accumulation.

Part IV. MARKETING BUSINESS PRACTICES OF BAGNET INDUSTRY

Direction: This portion was designed to determine the level of marketing practices of
Bagnet Industry in Vigan City along raw product, price, place, and pricing. Please rate
your practices in each item by checking the number that corresponds to your choice using
the scale below:
5-Always (A)
4-Oftentimes (O)
3- Sometimes (S)
2-Rarely (R)
1-Never (N)
A. Product 1 2 3 4 5
1. Bagnet products are classified according
to:
a. Size
b. Price
2. Bagnet products are available at all times.
3. Bagnet products are quality.
4. Bagnet products are produced personally.
5. Bagnet products are taken directly from
producers.
6. Bagnet products are taken directly from
manufacturers.
7. Bagnet products are personally picked up
from producers.
8. Bagnet products are delivered by the
producers.
B. Price
1. The price of the product is determined
based.

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a. Cost or amount of expenses.

b. Suggested by supplier-manufacturers
and/or wholesalers.
c. Demand (volume of buyers)
d. Competitors
e. Prevailing market price.
f. Least pricing
2. Different prices for different size of bagnet
are used.
3. Provide credit sales
4. Price dependent relative on type of
customers are used.
5. Giving discount regular buyer/suki.
6. Basis on changing price.
f. Profit earned
g. Available order
h. Cost or amount of expense
i. The market demand and supply
j. Competitors price
C. Marketing Channel
6. Sells directly to consumer
7. Sell using retailer
8. Use own store in selling bagnet
9. Sell mostly to wholesaler
10. Sells bagnet in terms of:
d. On cash basis
e. Cash on delivery
f. On credit

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Part V. FINANCIAL BUSINESS PRACTICES OF BAGNET INDUSTRY

Direction: This portion was designed to determine the level of marketing practices of
Bagnet Industry in Vigan City along capitalization and budgeting. Please rate your
practices in each item by checking the number that corresponds to your choice using the
scale below:

5-Always (A)
4-Oftentimes (O)
3- Sometimes (S)
2-Rarely (R)
1-Never (N)
A. Capitalization
2. The management considers the following
factors to properly finance its operations.
f. Borrows funds from family and
friends.
g. Borrows funds from banks and other
financial institution.
h. Avail of purchase discounts.
i. Credit from suppliers.
j. Government programs.
B. Budgeting
4. The management considers the following
to monitor the financial operations of the
business.
c. Expected sales
d. Expected cost and expenses
5. Insures workers and properties
6. Buys equipment and furniture for use in
the business

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REFERENCES

A. BOOKS

Bitlle, Ramcey. Production Management Vol. 2

Calderon, Jose F.& Gonzales, Expectation C. (1993). Methods of Research and

Thesis Writing. National bookstore.

Go, Josian. (2000). Marketing Mix strategy in The Philippine Setting, manila:
Josian

Stevenson, Mark (1990). On production and Marketing Activities

The Chapily, Gopinathan (1979). Business Management

William, Stevenson J. (2002) Operation Mangement 8th Ed. Mc Grwa-Hill

International Edition

William, Stevenson J., Etzel, Michael J. Fundamentals of Marketing 9th ed. (2001)

B. WEBSITE

http://www.ourawesomeplanet.com/awesome/2011/08/the-story-of-vigan-

longganisa-and-bagnet.html

http://casaveneracion.com/the-immortal-bagnet/

http://www.overseaspinoycooking.com/2008/07/vigan-bagnet.html

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